Question

Current Dividend in $
Mean    0.14
Standard Error    0.01
Median    0.12
Mode    0.05
Standard Deviation    0.12
Sample Variance    0.01
Kurtosis    1.19
Skewness    1.28
Range    0.51
Minimum    0.01
Maximum    0.52
Sum    12.07
Count    84

1. Use the above summary measures to compute a 95% confidence interval of the mean Dividend of all Companies that pay a dividend.
2. How would you interpret this interval?
3. A reputable financial advisor recently made an estimate that when a company does pay a dividend, that dividend, on average, was 16.5 cents. Does your calculation from part (a) support this contention, disprove the contention or is it too close to say? Explain your reasoning.   
4. Explain how your conclusions in part (c) might be affected if you used a 99% confidence interval instead of a 95% confidence interval (No calculations required).
5. For the confidence interval calculated above in part (a), had the sample size of Companies been n = 50 instead of n = 84, could you have come to a different conclusion in (c)? Explain your answer. (No calculations are required.)
6. If the sample size of Companies was n = 20 what potential problems could there be in performing this type of analysis? (No calculations are required.)

Answer 1